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Worldwide Exchange

News/Business. Brian Shactman. Business news including in-depth analysis of worldwide trends.

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Toyota 38, U.s. 26, Us 23, Ben Bernanke 22, United States 17, China 15, Asia 15, Europe 14, Ni Hao 12, Google 10, Becky 10, Hyundai 9, Tokyo 8, Chloe 8, Nicole 7, Shanghai 7, Greece 7, New York 7, Sarah 6, Italy 6,
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  CNBC    Worldwide Exchange    News/Business. Brian Shactman. Business news  
   including in-depth analysis of worldwide trends.  

    February 24, 2010
    4:00 - 6:00am EST  

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welcome to "worldwide exchange" on cnbc. in the headlines here in asia, toyota says sorry for letting safety standards slip as its president gets set to be grilled by the u.s. congress today. >> in europe, google faces anti-competition measures. in the united states, ben bernanke gets ready to outline an exit strategy to a skeptical congress. >> a warm welcome to "worldwide exchange." i'm chloe cho in asia. it's just past 5:00 p.m. in singapore. let's check on where the asian markets are wrapping up the trading day. mostly weaker today on the back of weaker consumer confidence
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numbers. and toyota lows taking the nikkei lower by 1.5%. the hang seng off 0.75%. on the other hand, we have the shanghai composite erasing all of its earlier losses, pushing higher by 1.3%. a lot of speculation in small cap stops and what may be linked to the national people's congress set to kick off next friday. other markets are weaker, the kospi down 1%. the bombay sensex has been trading around the front line. the aussie market asterisk comes off the table, a lot of commodities and resources lower. the s&p/asx 200 down .5%. let's check on the ftse cnbc global 300. slightly off 0.4% at 4,315. good morning, becky. >> good morning. it's about 10:00 on the continent. european markets have been trading for just over an hour.
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here is how they're looking. the ftse and the dax trading slightly lower in each instance. in switzerland, the smi is posting gains of just about 0.2%. nicole. >> and a very good morning. i'm nicole lapin in the united states. this is how markets are likely to open. higher, but slightly up across the board. the dow yesterday lost its biggest point and percentage gain in two weeks. but dow futures are actually down now. this change just in the last couple of minutes, down about 4 below value and nasdaq futures are up slightly, s&p futures are down slightly. so a little bit of a mixed board today, chloe, as, of course, all eyes are on the fed. >> absolutely. and let's get out to our guest host for the full hour, mr. enzio far.
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a lot of caught in the markets. toyota woes gripping the markets. in asia, a lot of the markets were weaker. and you've been calling for a correction. that actually never really happened next year. do you think maybe your timing, you know, may have come, maybe that could be now? >> well, i'd like to think so. finally, i supposed if you say something long enough, it will actually happen. but i do think that there are good reasons for that correction, which clearly is on its way since it's been since the start of the year. and that's because the economic time, in our humble opinion, just isn't as good as people think. that is what is going to weigh on the markets. >> what is happening in china? today we had hong kong lower, but shanghai moving higher. we definitely had more announcements from the banking regular in china about what achs to be consistent tightening.
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yet investors in china appear to brush that aside. what's happening? >> i think what we're seeing is a clear reaction in shanghai today. but again, with all governments globally tightening, i think that what you will find is that that shanghai composite will continue trending down, not up. >> sir, this is nicole lapin in the united states. all eyes are on the fed today as ben bernanke hits the hill for the first of two days. of course, every investor is clinging to every word to come out of bernanke's mouth. but do you actually think that he's going to make any news? is he going to say anything investors don't already know? >> i don't think so. i think that what he will try to emphasize is that that discount
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trade hike that he had was actually a policy move that has very little to do with tightening and it has everything to do with trying to get banks to lend again to one another. so my view is that he will, if anything, seek to reassure congress that the course of the fed is steady. what i look at with sudden worries is the politicalization of that monetary policy because of what the fed did during this last crisis. >> enzio, it's becky in london. what sectors do you think investors could find value in at this stage in economic cycles? >> i think at this poor stage of the cycle, you'll be best if you're involved in the stuff that doesn't go down or up because people need it, like utilities, consumer staples, health care, pharmaceuticals. but you don't want to be in
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those cyclicals, other than, of course, you have the bravery to short them, such as the shipping stocks. >> how long do you think that situation will persist? at what stage should investors start to look elsewhere? >> they should start looking at the cyclicals probably back at the earliest in 2011 once things get blackest, once the fest has become hiking the fed funds rate and people really think this is the end. >> i want to bring back our attention to china. today, small stocks had a strong rally today, even some little known money losing agricultural company. and looking forward, this is a key event in china as far as the policy is concerned. do you think this could give
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investors some value in the short-term? what sectors, companies are you looking at in china? >> well, the sectors, again, clearly have to be the more secure sectors, such as the utilities, the health care, the consumer staples. just because i think what we've seen in china in past cycles is that once they do tighten, you tend to get a form of tightening that you could call knee jerk tightening. i'm afraid that's what's going to happen again. the market will be taken by surprise, won't know quite what to do and down it fails again. >> we'll have to leave it there for the fu , but enzio, you'll stay with us for the full hour. >> ben bernanke is delivering
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his economic report at 10:00 this morning in new york. he's expected to use the forum to assure lawmakers that the fed can begin tightening policy when it decides to without rocking financial markets. bernanke may also stress last week's hike of the discount rate as being a technical move and not one to shift policy. he may try to defend the fed's role in supervising the financial markets. this is coming at the same time as st. louis fed president james bull yard is out taking aim at lawmakers financial reform mrapts plans that would essentially strip the central bank of its oversight hours. he says as the lender of last resort, a strong fed offers the united states to avoid a future financial crisis. bullard did welcome adverse to make it easier to shut down financial firms. bullard doesn't expect a rate hike until at least this fall.
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the president hosted several top executives at the white house on tuesday night, including jeff immelt, jpmorgan's chief jamie dimon. the president's agenda is focused on job growth, investing in energy and education and an appeal for bipartisan support for his efforts on health care, financial reform and cutting the deficit, becky. >> google is being investigated by the european commission for a sooesh series of complaints about its practices. the world's number one search engine has been notified of xlients from three different companies. the uk price comparison site found them and french search engine ejusts. some claim it's because they compete with google. fitch has down gaded four of europe's largest banks.
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meanwhile, thousands of greek workers are planning a mass protest against the government's austerity plan. a nationwide strike will close schools and hospitals and disrupt policy today. this involved unions have both public and private sectors. >> weak private consumption is one of the main causes of germany's stalling recovery. research out today shows worries over jobs and possible german rescue is reducing confidence back at home. government data shows reduced gdp by 0.3 in the last quarter. chloe. toyota's top executive says
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safety standards slipped. under questioning -- it's taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts. the problem has been compounded by our poor communications within our company and with regulators and consumers. >> jim lentz there, u.s. president of toyota. under questioning, he agreed that 70% of complaints about unintended acceleration remained unexplained. it will be the company as akey yo toyoda's turn to testify today. he will hold a press briefing after his congressional testimony. shares closed down 1.5% on the nikkei 225 today. hyundai will be recalling the
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hinge on the 2010 sonata, making it impossible to shut the doors. hyundai will start the recall in march and 46,000 of the domestic market and another 1,300 in the u.s. markets are affected. >> coming up on "worldwide exchange," fed officials criticize financial reform proposals that would strip the central bank of oversight powers. they say it could weaken a future crisis. are they right? stay with us. 
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welcome back to "worldwide exchange" been i'm becky meehan in europe where it's 9:15 here in london, about 10:15 in continental europe. this is a live shot at what's going on across st. paul's cathedral. and it's a pretty gray day, to be honest. but i'm positive spring is just around the corner. let's get a quick view of how bund markets are moving today. 10-year bund, 3.14% is where we currently stand. looking across in the united states, 3.9% is the yield on the 10-year note. chloe, how are the forex markets
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looking? >> i would imagine plenty of caution ahead of ben bernanke's testimony in congress. the dollar under a bit of pressure at this length. euro/dollar, sitting on the 1.35 sideline. fitch downgraded a couple of large greek banks yesterday. sterling/dollar, not looking that great especially on the back of mervyn king's comments. sterling/dollar, 1.5423 and euro/sterling, 0.8765. ben bernanke will demand the bulk of attention today as he testifies before the house financial services committee at 10:00 a.m. new york time. january new home sales are out at 10:00 in the morning, as well. forecasts are up nearly 4% to an annual rate of 355,000. at 10:00, treasury secretary timothy geithner goes before the house budget committee to
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testify about president obama's fiscal 2011 budget plan. the weekly u.s. inventory data is out at 10:30 in the morning new york time, as well. a dow jones survey calls for oil to rise by 1.9 million barrels, gasoline by 500,000 barrels and distillates to drop by 1.2 million barrels. tjx reports before the bell, we will also hear from toll brothers, dollar tree, transocean and the washington post. becky. >> it's been a fairly quiet day of trades. there has been a bit of wait and see ahead of some of the act we've got later on, particularly in the states, the bernanke testimony, for instance. we are seeing declines for about 0.2% for the ftse 100, the dax, the cac and the smi slipping by a fraction less than 0.5% in each instance, really.
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let's get a check on the facility. if we take a check on the gainers and losers, we see some more defensive stocks managing to gain some ground today. utilities, for instance, scottish is higher by 0.8%. they are all utilities companies and moving higher. some of the banks are not doing too badly in today's session, as well. rbs on thursday, royal bank of skol scotland, that is, and loits banksing group will be reporting on friday. on the down side, wolseley plumbing and heating materials company, the biggest in the world, for that matter, and the shares in the company are down by 277%. worth pointing out, a couple of the other stocks, as well, that lie outside the ftse 100 are on the move today. traffic perkins is a uk listed stock and it's a building merchant. now, surgeance came out with
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some earnings today. they told us they've seen a decline in profits of 7% and probably more worringly, they don't see any clear indication there will be any recovery on the horizon at all. so shares of travis perkins are down and down hard, about 6.6%. so wolseley seems to be getting hit from that. now, worth checking, too, what's going on with barrett developments, barrett is a home builder in the uk and clearly it's been hurt by the downturn in the uk housing market. but today, those shares are bucking the trend and gain by 0.6%. there is, again, the direction of the markets generally very much against the direction of some of the building merchants that are suffering particularly today. they told us those losses narrowed. they also told us that they believe their operating margin will grow. so we have seen a bit of upside coming through from barretts, as
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well. let's move on from the ftse and talk about what's going on with the cac across in paris. stephane pedrazzi has the latest. stephane. >> and we have a positive reaction on echo after the company confirmed it's going to demerge its two main businesses at the end of june. a plan will be schmidted to the bulk of the shareholders on june 29th. as a plan to reduce the debt to zero by 2011. the company announced a loss of $282 million euros for the last year. that was unexpected. the original forecast was a profit of $208 million. the hotel business has been impacted by cuts in business trips by companies and the economic slowdown. also in focus today, we've got a couple of earnings. aldia posted a return to profit in the fourth quarter, 28
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million euros. the company says it will improve its profitability in 2010 with at least a 35% increase. they are going to implement a new cost savings program of 130 million euros this year. that explains the positive reaction. also positive reaction and value the company beat expectations for the last year, despite a 46% decline of its net profit. they're expecting a decline in sales and profitability in the first half of 2010, but still, the stock is trading higher, becky. >> stephane, i know you have some strike action happening in france at the moment. can you give us an update? what's the latest there? >> the strike is still jog ongoing for the air traffic controllers. 25% of flights have been canceled today at the airports. 50% of flights at paris only. air france klm will maintain all
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its long hold destinations. but there are important destinations for the european flights. in the refineries of total, the strike is now closed. the company promised yesterday not to shut down any refinery in france within the next fooip five years and the main union has called for the end of the strike action. votes will take place later this morning. becky. >> stephane, thanks very much for that. let's talk about what's going on in switzerland. the smi has managed to outperform many of the other major european markets, actually. let's get out to zurich with the latest action and carolin schob schober. >> it is outperforming other markets. it has lost strength in the last hour here, now down into negative territory. it is a clear picture of risk averge here on the smi. we see the cyclicals and the financials being sold off in favor of the defenses. nestle is the biggest gainer up
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by 0.4% followed by roche. in terms of the sectors, you have the banking stocks, as i mentioned, under pressure, continuing its weakness from yesterday. credit suisse, ubs down 0.5% to 0.9%. julius baer is possibly the only exception here up by 0.1%. the insurers, zurich financial and swiss re limiting their losses to the downside, down by 0.2% and 0.6%. now, let me mention roche, the dugmaker here. the stock is higher by 0.3%. that stock is definitely benefiting from a recommendation of eu officials for the cancer drug xeloda. it is recommended for the treatment of early colon cancer. >> carolin, i know you've been looking at the telco sector today. what's been going on over at swiss com? >> swiss com announcing this morning they've taken note of the renewed investigations into
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an italian subsidiary in which they hold ruffle 70% in addition to v.a.t. abuse allegations and investigations, they're also facing investigations into money laundering. swiss com said that they don't see any risk for that business. swiss com shares down 0.5%. in italy, fasweb shares are down nearly 10%. with that, let me sent it to chloe in singapore. >> carolin, thank you very much, carolin schober there in zurich. let's get out to enzio. he's our guest host. aside from ben bernanke testifying on the hill today, acueo toyoda, grandson of the founder of toyota will do so, as well. we're going to talk more about this issue with our next guest in about 10 minutes or so. but i want to get your thoughts on the overall impact on japan
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inc giving that a lot of the majority of tokyo holdings companies have come out with stellar earnings results. but the government just yesterday or so had to downgrade its assessment of exports. >> we've kind of given up on japan's economic prospects, to be honest with you, just because it got stuck in a rut. but what i would like to say to toyota without being an automobile specialist is that i'm concerned that what we're now beginning to see is something that i refer to host country protectionism, which goes to say that with the americans now beginning to beat up on toyota ahead of those midterm in the u.s., by the way, you'll find there's very little reason for the japanese host country in japan not to also start beating up on some american companies in japan itself. so i'm afraid that the toyota
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hearing and this complete grilling that he's getting justified that some parts that may be are, in fact, very ill intentioned when it comes to the bigger picture of what's going to happen to multi nationals going forward. >> we've continually seen drum beats coming out from thailand, taiwan. today, hong kong gdp numbers beating expectations. which economies are you actually quite hopeful about and how are you investing? >> it has to be hong kong because we are the water ski on the back of the chinese speed boat. india i would put in there because of the demographics. i think die want will continue doing quite well. i'm less optimistic about southeast asia just because i think there are going to be a lot more political issues. singapore is always going to be
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the nice house in the somewhat tricky neighborhoods. but i would really stay much more with the china story. >> absolutely. and we'll hear more from you. en zero, you are our guest host for this hour, enzio vonn phi. still much more to come here on "worldwide exchange." all eyes are on toyota today as the carmaker's ceo faess tough questions on how the company handled recent safety issues.
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enzio vonn file pfeil
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welcome to the show. the headlines today, in europe, greece protests and thousands begins to march against the budget cutting plans. >> and here in asia, toyota says it is sorry for letting its safety standards slip as the company gets set to be grilled by congress today. >> in the united states, ben bernanke heads to capitol hill to outline the exit strategy to a conceptual congress. >> welcome to "worldwide exchange." let's take a check on the ftse cnbc global 300 index. here is where we stand. just coming off the low of the
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session, however. >> here in asia, we had a mostly softer picture, except for the shanghai picture. of course, a lot of speculation as to what the chinese leadership might say in the run up to the national people's congress. the other markets, as you can see, the toyota problems as well as the strength of the yen gripping the nikkei lower. down by 1.5%, the hang seng off 0.8%. a lot of mainland banks weaker there, given that we had more comments about a tighter lending rule as far as the local governments are concerned in china. but actually, that was more of a factor on the hang seng rather than the shanghai composite. taking a look at the other markets, the kospi is softer, bombay sensex, no real reaction to that railway budget story today. the aussie market, as you can imagine, has plenty of caution. the s&p/asx 200 down by 1.5%. good morning, nicole.
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>> very good morning to you, chloe. i'm nicole lapin in the united states. here is how we're expecting markets to open lower across the board. the dow edging lower, just in the last half an hour, down about 18 points below fair value. nasdaq futures are about flat and s&p 500 futures are lower just slightly. let's continue that conversation with sarah hewin from standard chartered bank and also still with us, enzio vonn file. sarah, i want to start with you. we are focused so much on every word coming out of ben bernanke's mouth today. this is coming at the same time as st. louis fed president james bullard says we are too focused on rate hikes. do you think the market is too focused on rate hikes? >> i think the market is a bit focused on rate hikes.
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i think bernanke is likely to stress this is a technical issue and it's certainly not a precursor to raising the fundamental funds rate any time soon. >> as you know, sarah, we are not only watching for the testimony from ben bernanke, but this is coming after treasury announced yesterday that it would increase to 200 billion backed. what's the rationale you see for that? >> obviously, there's a substantial financing requirement in the u.s. at the moment. and we're sort of seeing this interplay, really, between what the fed needs to do ultimately in terms of withdrawing the excess liquidity, withdrawing the excess reserves that it has and the treasury's requirement to continue to finance a very substantial debt and deficit.
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so it will be interesting to see how treasury markets respond to events over the next couple of days. obviously, bernanke's testimony, but also the huge amount of issuance that's coming out today, tomorrow, for the rest of this week. >> sarah, we know you believe there are head winds for the u.s. economy. how does that play out here in europe where even in today's headlines, we're looking at protests in greece, austerity measures there and some increasing signs of stagnation in the german economy, too? >> yes. i think the focus is still very much on how greece is going to defense its substantial debt. we bought a big financing requirement coming up in april and may. and the scenes of protests on the streets of athens don't make for a very sort of very good coverage in terms of greece's reputation. of course, there is a lot of
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support for cuts to the deficit. and we think that over the next few weeks, the european commission will support greece's efforts at reducing the deficit and that there will be some further additional support from the eu to help greece get through this big financing requirement. in terms of germany, it's true fourth quarter gdp was flat. but a lot of this was due to inventory situation. if we look at what's happening on the export side, of course, germany is benefiting from the tpo which is resulting from greece's problem. in a roundabout way, there is an element of support for germany there. >> sarah, good morning. this is chloe. i wanted to ask you, we've had decent numbers coming out of a lot of asian economies this week, certainly beating expect ages. we had thailand, hong kong, and
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we expect to get decent numbers from india this week, as well. but my question is, these numbers come from not only strong exports, but also from pretty strong domestic consumption, as well. do you think that the environment that we're in here in asia is going to give more support to the chinese government to actually get moving on the renminbi appreciation? do you think that could be something that will come out during the national people's congress later next week? >> well, i think that there is a case for renminbi appreciation to the extend that inflation pressures are rising in china. but i think that the authorities are really going to want to see a further xwompt on the export side. true, we've had some good year on year export growth numbers recently, but these are due
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partly to base effects and exporters are still not in a particularly strong position. so i think we need to see stronger exports, we need to see more concerns about inflation, which is likely to pick up over the next few months before renminbi becomes a key policy instrument. >> sarah, it's enzio here. i wanted to know whether it gets the back drop of the public anger about u.s. bank bailouts, whether you think that congress is going to start metaling in the u.s. monetary policy? >> i mean, i think one would hope that they wouldn't.
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the -- obviously bernanke has come through at tough times in recent weeks and has faced criticism from members of congress as to how the fed has handled the situation, what the fed did in the run up to the financial crisis. you but i think the fed has taken the right sorts of measures, it could have resulted if financial markets had seized up for a long time. so i think the hoech is that the fed will be left to get on with doing the job it does best. that's not to say that there won't be further political pressure and i think this is a risk over the next few months. >> sarah, we are going to continue that conversation. but we appreciate your time. thanks so much for being with us, senior economist at standard
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chartered bank. enzio vonn file, please stay with us. our guest host for the next hour. let's get you to some big stories we're following around the world today. in the i'd, the s.e.c. meets today at 10:00 new york time on whether to the uptick rule. there are no exemptions for marketmakers. during the financial crisis, grids and company executives urged the s.e.c. to reinstate the uptick rule to help slow down more pressure on stocks. chloe. >> hyundai motor dropped to 276% in seoul trade as you can see at 114,00. this after they said they are going to recall the new versions of its sonata sedans to fix a
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faulty door latch. the hinge can become stuck at an open position making it impossible to close the door. hyundai will start the recall in march. 46,000 units in the domestic market and another 1300 in the u.s. are to be affected. becky. >> loouft answer what saw a cancellation of 900 flights on monday. they're adding 400 more flights today to try and get things back to normal. >> and coming up on "worldwide exchange," expect more i'm sorries from toyota's president as he appears before the u.s. congress later today. but will that be enough to restore public confidence in the world's largest carmaker? more on that story when we come back. before that, a quick check on how gold is fairing, down about
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$10 at this moment at $1,090.
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welcome back to "worldwide exchange." take a look at the hong kong harbor. pretty gray and grim. that is also we are looking at
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scattered rain showers out there at this moments. 23 degrees celsius. i think i feel better and warmer and toastier in singapore where it's 34 degrees celsius. moving over northeast asia to tokyo, let's find out what happened on the trading day there. we have ken moriyasu from the nikkei. good evening. >> thanks, chloe. good evening. tokyo stocks droup dropped by 1.5% today as investors seemed to lose recovery in the speed. tokyo shell lost another 1.9% after it cut production in half. toyota was once again the leader in trading value, losing 1.5% for the day. all eyeses will be on president akio toyoda as he appears before a congressional hearing in wall later today. mr. toyoda will announce that the company will change its decision-making process and enable each region to make its own decision about recalls.
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up to now, all recalls had to go through the headquarters in japan. mitsuin cosaid they will appoint an outside director. mr. muto, who now chairs the dioto institute of research searched as the top as the powerful ministry of finance. and hotels are anxiously awaiting the cherry blop blossom blooming season at the end of march hoping tourists come to stay. that was the nikkei business report. back to you, chloe. >> i remember the cherry blossoms, absolutely lovely. thank you so much for reminding us of the pretty sxeens in japan. ken moriyasu from the nikkei. let's get back to, of course, one of our leading stories today. all eyes are on toyota.
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he's going to be testifying before congress. for more, let's check in with yatsu hito. he joins us live from tokyo. we still have our guest host with us, enzio von pfeil. i'm looking at your notes and you're saying toyota had no clear intention to high and that this debacle is probably going to take two to three months. one the way ispancy and perception over the sufrty of the information about people we talk to in japan vis-a-vis the rest of the world? for the toyota story to get on the front page of major dailies, that only happened about a week or two ago. why? >> well, actually, the first report that people have not been convinced by the toyota story so far, sense people have an impression that people have
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not -- for the current program. and they insist that they have no problem in mechanics. even though, they did not give us a clear explanation for the problem. >> but for millions of the people around the world driving toyotas, trust and confidence are quite important and this internal memo that surfaced just a few days ago talking about how they were able to saveed 100 million, that's going to be quite damaging, wouldn't you agree? >> yeah, yeah. ta document gives the impression that toyota simply ignored the issue at thees and of cost cutting. that is negative. but i don't know why this kind of document is coming to the people's attention this time so that probably toyota has some problem in controlling the media
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or something like that. i'm so disappointed by that document so far. >> nicole lapin in the united states. i'm sure that you were watching the testimony out of washington yesterday. some really chilling testimony from a woman specifically directed by this crisis. i want to listen to a little bit of that and let's discuss that a bit. >> i put the car into all available gears, including neutral. but then i put it in reverse and it remained in reversed as the car speeded to over 100 miles per hour down the interstate. i placed both feet on the brake after i firmly engaged the emergency brake and nothing slowed the car. after six miles, god eintervene.
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as the car came very slowly to a stop, today i must say shame on you, toyota, for being so degreedy and shame on you, ntsa for not doing your job. >> chilling, chilling testimony there from rhonda smith of tennessee. how does toyota bounce back from something like that and change the message today on the hill? >> actually, the preem satisfied that toyota is prepared to deal with the problem. i think that they've tried to dp any possibility for mechanical. but nobody knows any possibility for the mechanical ways. but we expect them to show sincerity to find out the real cause of the problem. and avoid any repeating in the
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future. but the lack of sincerity, that's why people are so dissatisfied and angry so that the current system, that's anger against toyota. so they're pretty much fail in media control. >> mr. matsumoto, it's enzio von pfeil. do you see a japanese back slash in japan against u.s. multi nationals operating in japan now that the americans are lashing out against a japanese multi national operating in america? >> well, yeah, i think since toyota's representative of japan inc, i think the japanese companies should be confident that their global strategies are global in nature.
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so i think they have to get the management team to look at the globalness and that toyota simply proves that they are local japanese companies. >> it's becky in london here. how would you think these events change the -- the kind of competitive scenario for some of the big global carmakers? does it give some of toyota's smaller rivals potentially room to step up their game? can you hear me? it's becky in london here. >> let me get out to you what becky just asked you. becky was wondering which carmakers on the global another scene would benefit from toyota's woes. >> well, i think at this point, hyundai motor. of course, hyundai motors got
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stuck in a recall. but hyundai motor is the one that would benefit from the toyota problem so far because people are losing some interest in the japanese carmakers. so hyundai or other carmakers should be at the front line to take a benefit. >> we'll have to leave it there. thank you so much for your time. you have a lovely evening. they are talking to us from tokyo and, of course, the prepared testimony of akio toyoda suggests that they're going to add an extra layer to the checks and balances when they make recall decisions. let's see how that testimony goes later today. and from tokyo, let's switch over to mumbai and get the india business report with ayesha faridi. ayesha. >> thanks for that, chloe. just about stepping quietly into the big budget week. that's pretty much been the case for the nifty for all of this week. you have the budget announced today, pretty much a nonevent
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you would have to say for the markets. it was pretty much on expected lines, just a couple of key points from the market. there hasn't been any hike that has come about. that is quite a positive news, really, coming in for the entire commodities space. you have cd players welcoming this particular news. a lot of wagon procurement which has been under date because there has been a large budget allocation which has been provided. so most of these wagonmaker stocks are holding up very well in trade and reacting very positively to this news. of course, there has been special focus in security systems on platforms and even in wagons. so a couple of these security measures are shooting up in trade, almost an 8% notch up. how a couple of these security companies are seen in trade. besides that, the market has been very, very quiet. it's been a low turnover there.
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tomorrow is the expire day, as well. you have the economic service and thereafter is the big union budget announcement. so stepping into that, the market looks fairly quiet at this point in time when i.t. is holding up. auto is really the one currently slackening in trade. >> thank you so much, ayesha faridi in mumbai. appreciate that and hope to see you very soon. switching our attention to adam bakhtiar for a look at the other markets we're with watching out here. adam, too bad i don't have the drum roll for you today. i try, though. >> you do, you do. chloe, it was a great session. the shanghai composite managed to buck the overall down trend here, higher by 1.7%. mounting concerns about potential liquidity tightening there as, of course, they're looking to reign in explosive credit growth that has led, some may argue, into potential bubble
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crises. the chinese regulator basically told commercial lenders in china to restrict facilities to financing of the local government facilities, not to lend too aggressively and verify that those lows are being used for the intended purpose. but overall, we saw investors shrug that off the low for the banking shares. that said, take a look at the h share stocks, as well. we saw a fair amount of activity, of course, listed on the hang seng market. bank communications pretty much in focus today. they came up, they're going the be raising 6.1 billion u.s. dollars in a rights issue. that figure is higher than the 3 billion we speculated about a week or two ago. hsbc is an 18% shareholder. they have not exactly made any announcement to that effect,
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chloe, but we'll wait to see whether that does, indeed, happen. meanwhile, hsbc markets closed lower today. >> thank you very much, mr. bakhtiar. i appreciate that. now back out to hong kong where mr. enzio von pfeil has been our guest host for the last hour. before we let you go, we want to get your tips on how investors could preserve their wealth and boost their incomes, if that's possible. >> it's always possible to boost your income. the first point should be one should be long the u.s. dollar. in the near term, i think what you will find is that increased volatility, particularly in new york, will continue making for an unwinding of carry trades. that's point number one. point number two is don't be too involved with the equity markets at this point, because if you want to preserve your capital,
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we've begun the exit strategies, we saw that in those budgets coming out. >> right, right. >> point number three and finally, just a few sectors to be involved in utilities, for instance, ones you might want to look at. >> utilities and long on the u.s. dollar. well heard. thank you so much, enzio von pfeil. have a great evening and see you toon. still much more to come here on "worldwide exchange." fed chairman ben bernanke facing a grilling about the central bank's exit strategy in u.s. congress later today. we're going to discuss what to expect after the break. >> plus barbarry has made history. okay, class, our special guest is here -- ellen page.
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hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip to china! wow. [ chuckles ] when i was a kid, we -- we would just go to the -- the farm. [ cow moos ] [ laughter ] no, seriously, where are you guys going? ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! [ female announcer ] the new classroom. see it. live it. share it. on the human network. cisco.
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welcome to "worldwide exchange." in the united states, ben bernanke heads to capitol hill today to outline the fed's exit strategy to a conceptual congress. >> and in europe, google faces anticompetitive complaints making the european commission and separately three of its executives are convicted on privacy charges in italy. >> and here in asia, toyota says sorry for letting safety standards slip as its president gets set to be grilled by u.s. congress today. great to have you with us here on "worldwide exchange."
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i'm nicole lapin in the united states. it's just after 5:00 in the morning on wall street. welcome to the start of your global trading day. let's take a look at how markets are likely to open in the i'd after a down day yesterday and for the last couple of days. the dow is basically flat right now, really narrowing in the last hour or so. the nasdaq is slightly above fair value at this hour and the s&p 500 is slightly below fair value at this hour. we have fed chairman ben bernanke and treasury secretary timothy geithner. what are you guys seeing across the pond? >> plenty going on over there, isn't there? over here, eats just after 10:00 in london. european markets have been trading for a couple of hours. here is how we're looking right now. the ftse just managed to edge higher, but just by a fraction. the smi is higher than its peers today. trading up by 0.1%.
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modest declines for the cac and the dax. a bit mixed, really, for the european markets. chloe, what is going on in asia? >> i would imagine that the currency markets are looking pretty mixed, as well, given that there's a lot of caution ahead of the bernanke speech in congress. let's bring up the boards. we're looking at very little movement. sterling/dollar at 1.5447. and euro/sterling, 0.8767. sterling is not looking that great at this moment, especially since the mervyn king speech on potential qe expansion. becky. >> chloe, thanks very much for that. tim harris, ceo of harris capital, hopefully he'll stay with us for the next 60 minutes or so. tim, we looked through your
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notes earlier talking about risk and where we stand on global risk at the moment. what's going on? bernanke testimony, for instance, today. very much where we stabbed on investor risk appetite at the moment. >> it's interesting, markets having picked up since last week. the merrill lynch survey told you that many locations had derisk. if you ask investors what are most on your mind at the moment, they're talking about a double dip in the g-7 world and they'll talk about inflation/deflation risks. so i think that's keeping investors quite cautious. markets, you know, we haven't had that 10% drawdown. we haven't yet had a significant drawdown since march. markets have a rigorous feel in that respect.
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i think a lot of investors are conservative. >> and are we set for any point at a risk appetite? >> i think if markets really kick down is when investors get full on risk aversion. that becomes a macro trade. that's when we look at the world sliding away. it's when the q4 data begins to look weaker and weaker. i.e., the double dip moves more center stage. we've taken some high frequency data coming through. the consumer confidence number wasn't great. some of the industrial pmi rolls over a little bit. it's nothing in the short-term is getting people to go full on risk averse. people are on the conservative side of neutral right now and it's going to take a macro sign, a cracking growth i think more so than inflation. >> tim, nicole lapin in the united states. i want to pick up on consumer
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confidence. we had consumer confidence plunge yesterday, the lowest level since april. we were expecting it to be lower, but this nasty? >> it's interesting, because it's not as serious as i expected that data to produce. you could say the number in there, but it's not necessarily in the nature of that series. having said that, what happens through the back end of last year was pretty horrible weather. you've had horrible weather in europe and you've had horrible weather in the u.s. that has kept people at home rather than spending their money. obviously, in europe, we're seeing subtle changes coming back in the uk, for example. and when you look at the unemployment data, which is a classic trailing data series, right now it is still a headwind. more people are worried about their jobs than feel great about life. so i think the fact that the consumer confidence is back
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wasn't a great price. it's just the severity of the number. obviously time will tell if that is an outliar or whether something more extreme is running through there. >> this is chloe in asia. we continue to get the drum beats from the chinese regulator talking about tightening. how are you hedging your position as far as chinese strategy is concerned? >> the world is not quite sure how to take this in china. the markets are fantastic. they don't want to have growth running away. they're looking at inflation sensory. it was given as one of the contributing factors there. we do not want the inflation gd getting out of the bottle. when we look at g-7 and you see opinion is pretty equally divided between inflag risk and deflation risk, then we look at
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asia. it is inflation. so to see the choin he's controlling growth as best they can, i take that positively. increasingly, the old g-7 world is not going to drive export demand as it has done in prior years. so there's a balance there. i would expect to see more tightening coming in reserve ratio management from here. i think that is something markets are factoring in. i would be more concerned about an inflation upspike. i know inflation management is progressive. that in the medium term is a good thing. we're still longer yen the risk in terms of how we're navigating the world right now. frankly, when you look at where we are in the cycle of asia against the u.s. against europe, i still think that's the right
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place to be. >> stim, stay with us plenty longer. let me tell you, we've had some data out here in europe. better than expected, as well. euro zone industrial orders for december showed a month to month increase of 0.8% when the expectation had a decline of about 1% according to the data. an increase in industrial orders for november for the euro zone of 0.8%. let's get you some other stories we're following from around the world today. google, for starts. the european union an eye trust regulators are looking into three online complaints filed against google. google said earlier that the complaints from two of the companies involve google's search rankings. the uk comparison sight found them and ejustice both search engines demotes their website search results. fitch has downgraded greek
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banks. meanwhile, thousands of greek workers are planning a mass protest against the government's austerity plan. a nationwide strike will close schools and hospitals and disrupt public transport today. the march to parliament comes after eu officials and unions from both public and private sectors. nicole. >> and becky, nfed chairman ben bernanke delivers a report before the house financial services committee at 10:00 in the morning new york time. he's expected to use the form to assure lawmakers that the fed can begin tightening policy when it decides to without rocking markets. bernanke may stress last week's discount rate hike was a technical move and not a policy move. he may try to defend the fed's role in supervising financial markets. also, the s.e.c. meets today at
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10:00 in the morning new york time to sdooit decide whether or not to reinstate the so-called uptick rule. this would limit short selling in a company stock if it falls below a certain percentage point. the s.e.c. may allow legitimate hedging during a sales curve, but tlm be no exceptions. occurring the financial crisis, company executives urged the s.e.c. to reinstate the uptick rule to help slow down pressure, chloe, on stocks. >> nicole, here in asia, japan's top ranking toyota executive conceding that the company let safety standards slip after hearing opening statements on capitol hill last night. >> put simply, it's taken us too long to come to grips with a rare but serious set of safety issues, despite all of our good faith efforts. the problem has been compounded by our poor communications within our company and with regulators and consumers.
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>> under questioning, lentz agreed that under 70% of complaints about unintentional acceleration remain unexchanged. it will be akio toyoda's turn to testify today. he said we pursued growth at the speed at which we were able to develop our people and our organization. i regret that this has resulted in the safety issues described in the recalls we face today, unquote. mr. toyoda will be holding a press briefing after his testimony. take a look at toyota shares, closing down 1.5% over in tokyo trade. becky. >> still to come, shares in accor are trading higher. we'll get you more details in our global stock watch coming up shortly.
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hello there. welcome back to "worldwide exchange." let's check on how gold prices are fairing at this moment. under a bit of pressure at this moment, off about $ 8 to $1,092. we have the firm dollar and plenty of caution ahead of the bernanke speech in congress later, as well. also some risk aversion setting into the u.s. dollar especially after weaker u.s. consumer
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confidence numbers and checking in on how crude oil and brent are fairing and not soybeans at this point in time. interestingly enough, crude oil is below theed 79 per barrel. in most of the asian trading session, oil was trading above $79. brent is off 45 cents at $76.80. this, i think, largely and due to the firm dollar assets. becky. >> let's get to our roundup of the global equity markets now. we've got reporters standing by to fill us in on what's going on. in the meantime, let's show you the overview. a bit mixed, really. we are looking at small gains for the ftse and the smi. markets seem to be struggling for direction, really. plenty going on as we look forward to bernanke's testimony today. we've been talking about that a great length. let me show you what's going on in the ftse 100. currently trading higher and the banks are coming through with gains at this stage, too.
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hsbc, for instance, lloyd's, both the biggest gainers on the ftse 100 and both managing to post gains of over 1% in each case. we have earnings coming out this week, as well. they will obviously have an impact on their peers, as well. rbs reports their figures tomorrow and on friday we'll hear from lloyd's banking group. let's see what impact that has on the shares of the banking sector in general here in the uk. also, it looks like some of the utilities are doing quite well in the uk markets today. united utilities have been doing pretty well. they're helping to prop up the upside of things. but on the downside, plenty of decliners to mention, as well. miners have been struggling a little bit since wolseley is the biggest decliner. shares of wolseley, which is a plumbing and heating materials company, down by 2.5%. we have seen some caution coming through in the building companies generally. let me just show you outside of the ftse 100 what's been going with travis perkins. shares are down after they
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reported a full year profit, which fell by 11%. also saying tra vision perkins is seeing no indication of a return to growth. let's get out to paris now and check in with stephane pedrazzi who has the latest on the cac. >> and the situation is still driven in paris by accor, the hotel group, saying this morning that it's going to split the company into two separate entities, with hotel and prepaid services. the demerger will be schmidted to the shareholders at the end of june and the services company will start trading on its own at the beginning of july if everything goes well. accor announced a loss for the last year, that was unexpected, $282 million euros because of the economic slowdown and because of some charges. the stock is trading higher because of this demerger confirmation. also today, we have got a couple of earnings, profits in
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the last quarter of the year and the company wants to return to profitability this year. the company agreeing to implement some new cost savings. the stock is up more than 6%. negative session this morning in asia. let's find out why with adam in singapore. >> thank you very much, stephane. very much so, if you take a look up at north asia, the japanese equity markets were the biggest losers this morning. the u.s. confidence numbers didn't help, either, because the export dependent numbers in asia that rely on the u.s. consumer took a hit. a lot of the exporter stocks trading heavily in japan and south korea. even though we had positive numbers in terms of the trade data coming out from japan showing that exports rose 49%, the third biggest jump on record and thanks to export led growth in the asian markets, particularly the china market
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where we saw exports rise 18%. take a look at the exporter stocks. orders continue to be in focus as akio toyoda will be testifying about the toyota cars. we have expanding recalls hitting suzuki and now hyundai motors in south korea. and also because of fears about the u.s. consumer. back to you in the u.s. now, nicole. >> thanks so much, adam. still much more to come. who is going to steal the spotlight today? will it be ben bernanke's testimony on capitol hill or will toyota's president mea culpa and the house of represents take the spotlight? we'll discuss it after the break. we are taking your e-mails.
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worldwide@cnbc.com if you have a question for one of our guests pl been we will post it to them.
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welcome back to "worldwide exchange." this is a live street scene in athens. we are expecting later today that there will be protests by -- well, both public and
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private unions protesting against austerity measures being taken by the greek government. let's move on and talk about what's going on over at google, as well. google is facing a number of challenges in europe. european union anti-trust regularities are looking into complaints filed by three online companies against google. the eu commission says it hasn't opened a formal investigation for the time being. google said earlier that the complaints from two of the companies involved google's search rankings. they and ejustice both found google demotes results. separately, a court has convicted three google executives on privacy charges. we have more from claudia on this story. >> good morning. this does come as a surprise as these three men have been convicted in participating in
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this situation. it comes, of course, after four years that this has been going on with this bullying of a child with down syndrome by children in a school in italy. now, this conviction came as a surprise to these three managers and, of course, google this morning made comments regarding the fact that this is somehow limiting freedom and that the laws here in italy at this point in time do not foresee for them to have to evaluate before putting videos and that is very difficult for them to be able to control videos that are put on websites. it's very significant in defining what will happen in the future regarding this. so, of course, a censoring of websites is a big issue here. 6/there was discussion about whether or not to block these or not. so for the future for italy, this is a very, very big situation here, this conviction really marks the future.
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back to you. claudia, thank you very much for that. nicole. >> let's take a look at how markets are likely to open in the united states. mostly lower with two segs yesterday having its biggest percentage and point drop since two weeks ago, actually. futures for the dow are down about 7 below fair value. nasdaq futures are up slightly and s&p futures are down slightly. but, of course, all eyes are on the fed today. fed chairman ben bernanke delivering, of course, his semi-annual testimony to congress on economic and monetary policy today before the house financial services committee. this is bernanke's first time in front of the cameras on capitol hill since winning a contentious confirmation battle. joining us right now, pretty secretary under president obama, he is the managing director now of hamilton place strategies and a cnbc contributor.
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thank you so much for getting up early with us, tony. in hindsight, it may be a market overreaction to the hike in the discount rate last week, but let's set the stage for today. markets absorbed some of that. but what could have been done better? >> well, look, you know, i thought the fed actually did a decent job of trying to signal that it was going to return to a normal spread between the discount rate and the federal funds rate. but there was this market reaction. nicole, i think actually the snow in washington that hit that week may have had something to do with that. this testimony delivered by ben bernanke today was rescheduled from february 5th. the fed rescheduled that testimony where he talked about the need to return to a normal spread. but i think maybe it was a missed opportunity to explain that on february 10th ahead of the decision to make that
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technical correction. >> how does he potentially make up for the snow or some of the missteps of last week? >> he's got a pretty good story to tell in terms of the tools that he has before him going forward. i think people are going to pay a lot more attention to everything he says today. look for clues going forward. but one thing the fed was able to do and chairman bernanke was able to do was to pick up additional tools tools to be able to deal with withdrawing excess liquidity in the system. and that's primarily the ability to pay interest rates on reserves. and they're going to try out a new facility, a new program that is basically term block
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deposition exhibit deposits. i think the fed is probably a bit more confident now that they can be a little bit better in fine tuning the quantities of reserves in the system and that is going to be the challenge for chairman bernanke today, to explain that to the members. >> so, tony, we're all focused on the fed today and tomorrow, but it's really more pervasive than ever before, not just in the investment community, but the entire world. >> yeah. >> we have it. we can pull it up. he was "time" magazine's person of the year. i know he's taking questions for the first time. he's encouraging governors to speak out more. but is this transparency somewhat of a double edged southward? >> yeah. it really can be. i know ben didn't campaign to be "time's'' man of the year, although i think the ard wa was
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warranted. but he has done a lot in terms of, you know, the chairman himself being outspeaking and taking questions and encouraging fed governors to go out and speak and reducing the time between an fomc meeting and the release of the minutes. you know, the jury is out as to weather that level of transparency is good or not. ben is a -- he's a professor of economics. he's a historian of economics in addition to being a pretty good economist. and so he likes the ability to be able to go out and explain exactly what the fed is doing and i think he has a point here. i go back to two years ago, heading into the financial crisis, and a lot of people, you know, had never given a whole lot of thought to the fed or the fed chairman and what they do and all the tools before them. had there been able to be a better offer in educating the about the fed, maybe you wouldn't see some of this
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populist reaction the fed has had to take. so, you know, the chairman has a second term here. he's got five years to continue this education process and explain to people what the fed does and how it explains the policy decisions it makes. >> i know, tony, that you have helped prep former secretaries for addresses leak this in the past. we appreciate your time and your comments. thank you. >> thanks. nicole, still much more to come. as you've been talking about that issue with tony frato. fete chief ben bernanke is going to testify before congress today. markets across the globe have been getterry with their money. ah, auto! sir? finding everything okay? i work for a different insurance company.
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welcome back to "worldwide exchange." making news today, in the united states, fed chairman ben bernanke heads to capitol hill to outline the fed's exit strategy to a conceptual congress. >> and in europe, google faces
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anticompetitive complaints made for the european commission and separately, three of its executives are convicted of privacy charge in italy. >> in asia, toyota says sorry for letting safety standards slip. >> great to have you with us here on "worldwide exchange." a very good morning to you. it is just after 5:30 on the east coast of the united states. here is how markets are likely to open after a couple of down sessions akrod cross the board. we are looking at basically a narrow future board right now, narrowing just in the last hour or so with the dow down slightly. nasdaq futures up slightly at this hour. how are you guys looking, becky? >> let's take a look at european bourses right now. currently, we see moz modest gains to the ftse 100 and the smi across in switzerland. in germany, the dax is down by
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0.1%. the we're seeing small declines for the cac. overall, a tepid start to the trading day. chloe, how is it going over there? >> the dollar seems to be quite firm, especially as we run up, again, ready to hear what ben bernanke has to say. take a look at how the trades are hearing. dollar/yen holding steady at 90.14. through is slightly higher. the dollar strength is a broad theme in the currency market. euro/dollar, 1.35. sterling/dollar, 1.54. euro/sterling, 0.8774. >> fed chairman ben bernanke delivers part one of a semi-annual report on monetary policy today before the house financial services committee. he's expected to use the form to assure lawmakers that the fed can begin tightening policy when it decides to do so without rocking financial markets. bernanke will stress that last week's discount rate hike was
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not a technical move -- it was not a policy shift, excuse me, and he, of course, is going to be on the hill and we will be watching live here on cnbc. joining us now to talk more about it, eric shrid and still with us, our guest horse, tim harris, ceo of harris capital. eric, i want to start with you. what are we expecting to see out of the fed's testimony? it's said we shouldn't expect a rate hike until the fall. would you buy that? >> i would. i believe the fed is going to stay easy, as he says, for an extended period of time. i think there's a real tight rope to be walked. obviously, it seems to me that the discount rate last week and the bernankes need to begin some
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rhetoric about tightening. i think he's trying to appease the bond market. but i also believe him when he says it will be an extended period of time before he begins tightening. >> just to develop one of eric's points, which i find fascinating, is we look at where the bond market sits today. we're looking at massive steepness in yield curves between two and tens. the historic president says that's high, very high. and if you're going to be a bearer of bonds, you have to be pretty sure that the fed is going to be hiking. on the other hand, you have this massive potential supply coming in, not just in the u.s., but worldwide. that i think is weighing down on markets. credit quality is the other great issue. when you look at this massive
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steepness in the yield curve, i don't know how you would navigate that. >> well, i agree. particularly the supply issue that you had touched on. it's difficult for me to understand or to see how that supply is going to be absorbed without future kwan tafb easing. it is massive. so i think, you know, in the big picture, our attitude has been that we really just have kept short in the bond market. i'm not willing to extend maturity for that same reason. so i think you have to be very cautious in the bond market. >> eric, it's chloe in asia. would you work new money into financials? they stumbled yesterday. >> well, you know, at the
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moment, we actually -- i use a lot of technical analysis, and we still are seeing relative strength in the financials, so we still do have a position in financials and overweight in financials. but in the longer run, i do have concerns. i think that they're potentially are still bas bad asset problems. we all hear about in commercial mortgages and even in residentials. so in the longer run, it's another area that i think you can be tentative. >> right. then which banks, which financials are you looking at? >> we really pursue much more of a sector/rotation strategy. so we'll use more of an etf strategy as opposed to picking individual stocks. >> eric stridd, manage director at stridd wealth management.
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we appreciate your time. do stay with us. we want to continue the conversation and thank you to tim harris, ceo of harris capital. still much more to come on "worldwide exchange." president obama is set to meet with the ceos of blue chip companies today in washington. what's behind this attempt to win the hearts and souls of the business community? we'll have more on the other side of the break.
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welcome to cnbc's "worldwide exchange." here are some of the top stories we're watching from around the world for you today. in the united states, toll brothers reporting a smaller than expected first quarter loss. just in the last hour we're getting this in, the home builder posting a 33% in signed contracts. customer traffic, which had been consistently weak, is showing signs of recovery this month. this ceo, robert toll, says he believes the housing market is still in choppy waters, but the seas are getting calmer. tuesday, toll brothers closed at 1890. president obama will speak to the business round table today in washington at 1:00 p.m. the resident hosted several top executives at a white house dinner on tuesday night,
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including the verizon ceo. the president's agenda is focused on job growth, investing in energy and education and an appeal for bipartisan support for his efforts on health care and financial reform and cutting the deficit. sometimes wall street gets a bad rap. but i can tell you first hand that a lot of these big guys on the streets are doing their part to reach out to main street. with unemployment hovering around 10%, there is no definite fix. who is that? it's successful financial professionals with low income community members helping them with resources that they need in financial services. and i was there at their awards ceremony last night and i got a chaps to talk to the founder, as well, and ask him why he felt the need to start this
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organization? >> a lot of the corporations and a lot of the volunteers who work for this corporation, they get bad names. goldman sachs, barclay's, credit suisse, private equity firms, hedge funds, yet they are all very ben negative lent and you break down that stereotype when you have these individuals. and when they allow them into their halls, into their computer center to really allow them to train themselves and to help themselves, i think a lot of those stereotypes are broken down on both friends. what maybe the people in these firms think about low income individuals and vice versa. >> i was really honored to speak and i was struck by the impact they're having on communities in a powerful and sustainable way. right now, becky, former men's tours, they were mentees before.
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>> and what was that award that you won? >> i was honored for some of the charity work that i do. but i think it was also for not sleeping because i continued into this shift after last night. but it was a great honor and it was a fun event. >> well done. congratulations. >> and you even manage to look gorgeous, nicole, with a street sign projected on your face, which is quite impressive. you're the only girl i know that can pull that off. >> you're too kind, becky. european union antitrust regularities are looking into complaints filed by three companies against google. the eu commission says it hasn't opened a formal investigation for the time being. google said earlier that the complaints involve google's search rankings. they alleged google's search
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engine demoted their sites in website search results. >> becky, toyota's top ranking u.s. executive conseating that the company has let safety standards slip. >> put simply, it's taken us too long to come to grips with a rare, but serious set of safety issues. despite all of our good faith efforts. the problem has also been compounded by our poor communications within our company and with regulators and consumers. >> under questioning, mr. lengths agreed that about 70% of accelerations remain unexchanged. it will be mr. akio toyoda's turn to speak today. earlier efdz quoted as saying, we pursued growth over the speed at which we were able to develop our people and our organization.
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i regret that this has resulted in the safety issues described to date. take a look at toyota shares. off about 1.5%. >> let's get a final thought from tim harris. tim, tech is where you have plenty of focus. why now? >> i think there's a lot of support for tech. the one i find most interesting, particularly as we've run through the global earnings season is it's head and shoulders ahead of the earnings growth and earnings momentum turns. over the last three months, we've seen tech earnings upgraded by that 6% across the entire sector. that tells me something good is happening there. it could be china growth, it could be enterprise software. surely things are contributing. it's a heterogeneous sector. when you look at it particularly at a time when there's a lot out
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there, i feel pretty good about where tech is going. >> any particular stocks that you think we're avoiding or worth buying into? >> as i said, it's a very heterogeneous sector. if i look at the hardware sector, i look at axor, which i think is interestingly valued. we look at the components sector. i think that's reflecting strong conditions. that leaves apple, which i think apple is fighting on many fronts of whether the ipad is going to be a real winner or not. but what i do know is that in phones and in the pc world, they're looking pretty good, pretty well placed and nicely valued. autonomy in the uk, it had a bumpy time. order flow let it down a little bit. but again, i think that is a stock with the right product range, right set of services. >> so basically you've looked to the a's. >> yeah.
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>> disclosures quickly, do you own shares of those inspect. >> i don't, no. >> thanks so much for sharing your thoughts with us today. >> thank you very much. and up next on "worldwide exchange," we'll take a closer look at the day ahead on wall street. the ben bernanke testimony, timothy geithner's comments before the 2011 budget move markets? stay with us.
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u.s. "squawk box" follows "worldwide exchange" for viewers in europe, asia and the united states. joe kernen is here and he can tell us what we can expect from the show. joe, what have you got for us? >> i'm going to try, rebecca. we have the second day of hearing for toyota executives. today, the man himself will be testifying, the grandson of the automaker's founder, spelled with a d in his case because t was better for the can, but he is akio toyoda. he will explain how this recall fiasco started and what's being
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done to make sure these vex are safe now. we'll have live reports from capitol hill. and then bernanke, the fed chairman, delivering reports on the state of the economy. he will be testifying about the central bank's exit strategy. we have house services members paul kanjorski. he's going to tap into both topics at 8:00 airm a.m. now this case is about to go through the supreme court. skilling's lawyer will talk to who else? scott cohen on that beat today live at 7:30 a.m. "squawk box" will start, we expect people to be ready. all you have to do is sit up in bed as long as the tv is on at 6:00 a.m. back to you. >> you have to be sitting up, though, you can't watch it lying down? is that the conclusion? >> it might be better lying down, in fact.
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>> we'll take it lying down. >> nicole, back to you. >> i'm going to leave it there. ben bernanke will demand a bulk of the attention today among investors as he testifies before the house financial services committee at 10:00 a.m. new york time. there are a few other items of note today. january new home sales are out at 10:00, as well. also at 10:00, treasury secretary timothy geithner goes before the house service services committee. so let's bring back in eric strid. eric, what do you expect? what do you want to hear from bernanke today? >> well, i think wa we're going to hear, as i was talking about before, is a tight rope walk, really. i think that on the one hand, he's going to continue to -- need to continue to dial up the
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rhetoric about why they raised the discount rate and give some hints that there could be tightening in the future. they've got tools tools to do that. but at the same time, assure the markets that policy will be easy for an extended period of time. >> it is still up in the air as to what is going to move markets. do you think the market sell-off was overdone? >> no, i don't. i think in addition to consumer confidence, i think people got reminded about the situation which i think will continue to heat up and is continue to be problematic. so i think when you look at consumer confidence yesterday, the consumer numbers in general, i think there was a consumer credit indication yesterday, as well. but just in general, consumer confidence and consumer credit
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are subbornly poor. i think it's related to unemployment in many ways. but no, i don't think the market reaction to that was overdone. it was a terrible number. >> all right. we will continue to obviously follow the fed throughout the rest of the day. eric strid, we appreciate your time, managing director at strid wealth with management group. so let's take a look at how futures look in the united states. dow futures are up slightly. nasdaq futures are up slightly, as well. that will do it for today's show. i'm nicole lapin in the united states. >> i'm becky meehan in europe. >> and i'm chloe cho. thank you so much for tuning into "worldwide exchange." we'll see you again tomorrow.
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